DO YOU HAVE A BUY TO LET MORTGAGE EXPIRING THIS YEAR?
One
of the main challenges for landlords in the next few years will be
re-mortgaging their investment property. People who have been on a mortgage
product for 2-5 years, but now that product is expiring, will find the mortgage
market a whole different place to the last time they visited.
Gone
are the days when 100%+ mortgages are available. The maximum you can get as a
buy to let investor is now about 85% loan to value, and the rates aren’t that
attractive – to get a decent rate, lenders generally want to see you having at
least 25% equity in a property. Then there are arrangement fees etc.
For
many people, that’s unrealistic. Property values have slipped in recent years,
so most people who’ve bought a property since 2006 will find it’s worth less
now than what they paid for it. In the long term this isn’t a problem – prices will
rebound. But in the short term it can create a problem with remortgaging,
meaning that landlords need to either a) put more money in or b) take whatever
their existing lender is offering.
As
part of our range of services to landlords, we are now in a position to assist
with buy to let mortgages. We don’t do this within our local office – Landlords
can either deal with our mortgage people on line, or by telephone. However the
good news for landlords is:
·
Our mortgage services cover the whole market – there are
very few products out there that we’re unable to access, so you can be sure
that all your options are being considered.
·
Belvoir has been able to ensure you won’t be charged a
broker fee on any mortgage we arrange.
You
can access our mortgage section BY CLICKING HERE. I would suggest that if you do have a mortgage expiring, you review it a few
months before the expiry date, so you understand what your options are likely
to be, and have time to plan accordingly.
Richard.
